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Make a holiday budget and stick to it

Now that most individuals have endured Black Friday and Cyber Monday, is there any money left just to pay for the necessities of life, like food for the table and money to keep the utilities going? Trying to spread those tidings of great joy to all our family and friends, even if small gifts are purchased or made from home is there a way to share in the spirit of the season without going bust? Absolutely.

“Set a budget, make a list and, as difficult as it may be, stick to both,” advised Sissy Osteen, Oklahoma State University Cooperative Extension resource management specialist. “This time of year people tend to spend the most on travel, gifts and entertaining. Basically, if travelling home, a person is going almost regardless of the cost, but flexibility needs to be taken into consideration when it comes to gifts and entertainment.”

People spend an average of $600 to $1,200 on presents, which breaks down to $50 to $100 a month carved out of a budget that could already be stretched tight. Even though many rarely set aside dollars for holiday expenditures throughout the year, folks generally have an idea of what to spend on gifts and entertaining, whether planned for or not.

The holidays are full of tradition, and it can be an emotional time of year. Approaching the season in an organized and structured manner will help manage the money during what can be a very challenging few months.

For instance, if an individual is planning to entertain, figure out how large the guest list will be and decide then how much money to commit to the event.

When it comes to gift giving, do not be afraid to get creative. Think about friends and family members who appreciate crafts and make presents instead of purchasing. Coupons for services like mowing the lawn or babysitting also are a good idea, especially for kids. Or, families can forgo the traditional gift exchange entirely and focus on enjoying the chance to spend quality time together.

If joining the masses of shoppers hunting for that perfect gift, set a personal goal not to use credit. One of the biggest pitfalls for consumers this time of year is charging purchases without properly tracking them. Holiday purchases that are charged come due in January or February often causing the person to realize they have gone overboard.

Whether using a check register or a separate notebook, writing down every expense will give a person an idea of how much money is going out.

If you do find you have gone outside the bounds of your holiday budget, do not panic. The first step is to formulate a plan for paying for credit purchases and re-establishing a monthly budget.

If a person needs help making a plan, go to a nonprofit credit counseling agency. These organizations are usually sponsored by the United Way and their services are free. Even as consumers recover from holiday sticker shock, it is a good time to look ahead to next year.

One easy way to build up a stash of cash before the next holiday season jingles around is to look at what was actually spent this year and base plans for next year’s merry making on that figure. Setting aside $50-100 a month at the beginning of the year for holiday gifts and parties can be put in a budget just like any other expense. When the holidays come around again, an individual will already have the money set aside for that purpose.

For questions regarding this article or for information in the family and consumer sciences area, contact Gale Mills at the Washington County Extension office by phone at 918-534-2216 or by e-mail at gale.mills@okstate.edu.